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WAEC Commerce 1991 (August) Question 55

Question 55

Foreign Trade

A trade deficit means that

  1. A.the balance of trade is favourable
  2. B.exports are less than imports
  3. C.imports are less than exports
  4. D.exports are decreasing
  5. E.the balance of payments is unfavourable
Show the answer and explanation

Answer: B (exports are less than imports)

Explanation

A trade deficit means visible imports are greater than visible exports.